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Thanks Mom and Dad
#1
Well, I finally got around to reading the "Money" section of CRVL.  I am not in the position that a lot of people are that are members of this group.  I was very fortunate to have been born of parents who instilled a lot of financial knowledge in me when I was young and learned very early the importance of making a portion of whatever money I earned work for me.  Adding to that, I was fortunate to have been able to have a career in which I earned more than enough to live comfortably on.  Since the cost of my needs were always less than my earnings I was able to build a rather nice nestegg which now more than sustains my retirement.  I also give a lot of money to charity - food banks, habitat for humanity, etc. I'm not bragging, but just pointing out that I am in a much better position than a lot of the folks who read and post in this group. 

One thing that constantly amazes me is how similar the suggestions that Bob has made in the "Money" section are to the same suggestions that Dave Ramsey makes in his "Baby Steps". 

1) Avoid debt - especially credit card debt. 

Centuries ago it was written in the Bible that "The debtor is slave to the lender." That old piece of wisdom is still so true.  If you are in debt, then you are not free to spend all of your future earnings as you want.  You have already spent it.  You have no control on it.

2) Use cash for all purchases.

This prevents you from going into credit card debt - which is the most expensive debt there is.

3)  Budget, budget, budget

Bob recommends using an envelope system in which each category has a it's own envelope.  That method is also suggested by Dave Ramsey.

3) Always have an emergency fund.

Dave Ramsey often says something like - "Grandma used to always say to save for a rainy day.  Well I guarantee you 100% that at sometime it's gonna rain!"  How true - things happen.  The car breaks down.  You have an accident and need medical attention. etc.  If you don't have an emergency fund, then you're going to have to go into debt and that will put you back into bondage to your lender. 

4) Build back your emergency fund once you have to use it.

5) Plan for major purchases

Generally you know well in advance when a major purchase will need to happen. This should not be something that come from your emergency fund.  If you knew about it beforehand then it is not an emergency.  Money left over from the monthly budget can be used to fund the major purchases.   In financial terms this would be called a "sinking fund". 

I find it interesting that a lot of the basics of money that Bob Wells and Dave Ramsey says about personal finance are so similar.  I just thought that I'd point these similarities out.  I'm just grateful that I had these principles drummed into me by my parents and grandparents when I was a youth.
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The following 4 users say Thank You to mpruet for this post:
dawnann7 (12-16-2017), frater secessus (12-15-2017), speedhighway46 (12-15-2017), tav-2020 (12-15-2017)
#2
(12-15-2017, 09:10 AM)mpruet Wrote: I find it interesting that a lot of the basics of money that Bob Wells and Dave Ramsey says about personal finance are so similar.  I just thought that I'd point these similarities out.  I'm just grateful that I had these principles drummed into me by my parents and grandparents when I was a youth.

I noticed a similarity myself a couple of years ago.  Good advice is always good.  
Good for your parents and grandparents. 

Pat
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#3
love that you credit your M&D...
i try to pay cash for everything. saving for something gives the goal more weight and makes the reward sweeter.
i do have a mortgage, but went for a 10 year one and its almost paid off....that was my investment plan. sale of house will set up my retirement/nomad lifestyle.
in the meantime, saving for a small TT Smile
a tag along vagabond, hopefully ftrv by 2020
tav-2020   http://tagalongvagabond.com
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#4
My Mother's dislike of revolving credit taught me to pay off my one credit card every month, which I have done my entire life. If you cannot control your credit card it will control you.
2015 RTR  adrian.schafgans@gmail.com
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#5
I just borrowed $6000 from my credit card company.
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#6
I don't want to preach, but credit card interest is usually above 20% so I hope you can pay back that loan pretty quickly.
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#7
I get 18 months free interest. To pay it off, I have to pay little over $330 a month. I get this from two credit card companies. When I get near the 18 months, I'll borrow what ever I owe from the other card company. The one I just borrowed from is Bank of America...
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#8
But that means you have effectively lowered your income by $330 a month...
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#9
The funny part is we use one card for gas and the other one for grocery. We pay them off every month. I guess they're trying to hook me....
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#10
Five years ago 25K in debt, mortgage, health ins, (actually had none for two years even after a stent implant), barely making it month to month, took care of my wife who had health problems past 10-12 years. I was instilled good values too but bad luck
was worse than good learned values. But as I was selling things to get by I also was downsizing and here I am on the road full-timing with a small emergency fund, provided I don't live too long. 

So GoJo may had to borrow this. Credit cards saved me from bankruptcy but I always had low low interest and today my credit rating is quite high.
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